8-K

CRH PUBLIC LTD CO 8-K Report (Aug 20, 2013)

Filed August 20, 2013For Securities:CRH

Summary

CRH Public Limited Company (CRH) filed an 8-K on August 20, 2013, reporting its interim results for the six months ended June 30, 2013. The report indicates a decline in sales revenue by 3% to €8.0 billion, primarily driven by a 6% like-for-like reduction. EBITDA for the period was €0.4 billion, aligning with company guidance, though it was 18% lower than the first half of 2012 when excluding certain one-off gains. Despite challenging market conditions, particularly in Europe due to weak construction activity and adverse weather, CRH maintained its interim dividend per share at 18.5 cents. The company also reported significant acquisition activity, with €470 million invested in the first half, alongside €202 million in proceeds from disposals. Net debt increased by €0.4 billion compared to the prior year, reaching €4.2 billion.

Key Highlights

  • 1Sales revenue decreased by 3% to €8.0 billion, with a like-for-like decline of 6% attributed to weaker market conditions in Europe and adverse weather.
  • 2EBITDA was €0.4 billion, meeting guidance but down 18% year-over-year excluding pension/CO2 gains, reflecting challenging European markets.
  • 3The interim dividend per share was maintained at 18.5 cents, signaling confidence in the company's ability to sustain shareholder returns.
  • 4CRH invested €470 million in acquisitions and divestments generated €202 million in proceeds during the first half of 2013.
  • 5Net debt increased by €0.4 billion to €4.2 billion, largely due to acquisition and investment activity.
  • 6The company expects second-half EBITDA to be in line with the previous year, with anticipated strengthening in the US market.
  • 7Cost savings initiatives generated €111 million in incremental savings, with acceleration of efforts in Europe due to weak markets.

Frequently Asked Questions

The primary driver for the 3% decrease in sales revenue to €8.0 billion was a 6% reduction on a like-for-like basis. This was largely due to weak construction activity in Europe and adverse weather conditions impacting both European and North American operations.

EBITDA for the first half of 2013 was €0.4 billion, which was in line with company guidance. However, excluding certain gains related to pensions and CO2, EBITDA was 18% lower than the same period in 2012, indicating pressure on profitability due to market conditions.

CRH anticipates challenging trading conditions to continue in Europe for the remainder of 2013. However, the company expects improved performance in the United States and forecasts that Group EBITDA for the second half of the year will be in line with the prior year.

CRH continues to actively pursue a strategy of growth through acquisitions, investing €470 million in the first half of 2013 across various segments and geographies. Simultaneously, the company generated €202 million in proceeds from disposals, indicating a strategic portfolio review and active management of its business interests.